Tata Trusts plans 40-50 not-for-profit hospitals across the country: Noel Tata

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Tata Trusts, which is witnessing differences of opinion among its trustees and with Tata Sons Ltd, is planning to establish a network of 40–50 not-for-profit hospitals.“We are also working towards a network of 40 to 50 not-for-profit general hospitals across the country, with a model that allows those who can afford to pay for care, help make quality treatment accessible to those who cannot,” Tata Trusts chairman Noel Tata said in itsAnnual Report.Tata also called for greater accountability, financial discipline and measurable outcomes in philanthropy, saying that institutions must move beyond measuring their contribution by the amount spent and demonstrate the difference their interventions make.His remarks come as the Trusts reported total disbursals of Rs 1,556.31 crore in 2025-26, including Rs 1,353.32 crore in institutional grants and project expenditure and Rs 202.99 crore in individual grants.The dividend income from Tata Sons for FY26 is held up due to the stalled AGM of Tata Sons, a Tata group official said.In his message in the Tata Trusts Annual Report 2025-26, Noel Tata said, “It is no longer enough to ask how much we have contributed. We must ask what difference that contribution has made, and whether that difference will endure.”The pending annual general meeting of Tata Sons has stalled dividend payout by Tata Sons, the main income generator for Tata Trusts.Story continues below this adThe Trusts’ ability to sustain philanthropic commitments is closely linked to the income generated from Tata Sons. For FY2026, Tata Sons had recommended a dividend of Rs 1.10 lakh per share. Tata Trusts are eligible for a dividend income of around Rs 2,900 crore from Tata Sons.However, Tata Trusts, which hold 66% stake in Tata Sons, will get the dividend only when Tata Sons AGM clears the dividend, observers said.The last Tata Sons AGM was supposed to be on August 18, but it was adjourned for lack of quorum as Tata Trusts were unable to nominate a joint representative due to a restraining order on sir Ratan Tata Trust (SRTT).Dividend income from Tata Consultancy Services (TCS) is the major source of income for Tata Sons.Story continues below this ad“We remain conscious that every rupee entrusted to us carries a responsibility,” Tata said, underlining the need for greater discipline in the use of funds and a long-term approach to the country’s needs.The annual report shows that rural upliftment received the largest allocation among institutional grants and direct implementation project spending, at Rs 457.62 crore.Education accounted for Rs 270.26 crore, followed by cancer care at Rs 178.46 crore and support for institutions at Rs 169.31 crore. Healthcare received Rs 105.97 crore.Of the Rs 202.99 crore disbursed directly to individuals, medical assistance accounted for Rs 143.30 crore and education grants Rs 59.38 crore. Relief of poverty received Rs 31 lakh.Story continues below this adTata said the Trusts were increasingly identifying areas where they could build institutions and models that would become enduring public assets, rather than merely supporting existing initiatives. He also stressed the importance of partnerships with governments and other philanthropic organisations to expand successful interventions. “Trying to become the biggest before becoming the best rarely ends well,” Noel said, arguing that the objective should be to create lasting value rather than simply expand the scale of operations.